KMAKY Is an Accounting Firm and Has Been Hired to Audit

question 75

Multiple Choice

KMAKY is an accounting firm and has been hired to audit the books for Bike Spinners,Inc.While performing the audit,they find that although the company's financial statement fairly represents the company's position,the accounting methods the client used to arrive at the figures were not generally accepted in the accounting industry.KMAKY should provide the following opinion:

• A) a qualified opinion.
• B) an unqualified opinion.
• C) an adverse opinion.
• D) a qualified opinion, noting the problematic accounting methods.
• E) an unqualified opinion, noting the problematic accounting methods.

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Definitions:

Physical Distribution

The activities involved in moving goods from the point of production to the point of consumption.

Mean Absolute Deviation

A statistical measure used to quantify the spread or variability in a data set, indicating the average absolute difference from the mean.

MAD

Mean Absolute Deviation, a measure used in statistics to quantify the average absolute dispersion or deviation from the mean or average.